1. Renewable energy creates jobs
Employment opportunities are a vital consideration in planning for a low-carbon economy. Many governments have prioritized renewable energy development, firstly to reduce emissions and meet international climate goals, but also in pursuit of broader socio-economic benefits.
The overall trajectory in the trend of the employment graph confirms the sector’s consistency in generating socio-economic gains, even during disruptive events like the Coronovirus pandemic. IRENA has carried out an annual update to its assessment of renewable energy employment worldwide. This most recent report estimates that about 12 million people were employed in the sector, directly and indirectly, in 2020. Solar PV remains a market leader, employing 4 million workers or 36% of the Renewable Energy workforce worldwide.
2. Renewable energy is Reliable
When we consider what makes an energy source reliable, we must consider its availability, particularly its supply and location.
One of the most common misconceptions about renewable energy is that because the sun does not always shine and the wind does not always blow, it cannot be relied upon to meet our electricity needs.
This argument is not only incorrect, but it misses a critical point. The electricity system is responsible for reliability, not individual generation technologies. It's important to remember that "renewable energy" refers to six energy sources: solar, wind, biomass, geothermal, hydroelectric, and ocean. Only wind and solar are "variable;" the rest can be turned on and off as needed – termed "dispatchable" in the industry.
With Wind - Solar Hybrid technology, we are witnessing Capacity Utilization Factors of over 75%, and this can be further pushed up with rapidly maturing storage technology – whether with battery technology or pumped hydro storage. The future looks bright and we are fast approaching a reality where Renewables can generate on a Round the Clock (or, RTC) profile!
3. Renewable energy helps you offset your carbon footprint – and enables you to save on your energy bills too!
Continuing to use a fossil fuel energy resource like coal, oil, or natural gas might result in increased energy bills, which can be a drag on operational expenditure for Corporate consurmers. Given the current geopolitical situation, we are witnessing rapidly escalating fuel costs globally. This could result in paying more in energy costs than competitors who use renewable energy. Solar power allows you to save money on your energy costs while also helping the environment.
On the other hand, moving to clean energy can allow you to position your firm as an environmentally conscious and responsible stakeholder. Further, investors and consumers are increasingly demanding a greener supply chain, which compels companies to switch to renewables and gives them a competitive edge against their peers.
4. Renewable energy promotes Self Sufficiency for Businesses and Countries
Despite its rapid and remarkable economic growth, energy is still scarce in India. India's strong economic growth is driving up energy demand, which will require more energy sources to meet it. According to the International Renewable Energy Agency (IRENA), renewable energy can meet a quarter of India's energy demand. By 2030, the country could have more than one-third of a renewable power generation share. The government is committed to the increased use of clean energy sources. It is currently working on several large-scale sustainable power projects and heavily promoting green energy. According to the Central Electricity Authority (CEA), renewable energy generation will increase from 18 percent to 44 percent by 2029-30, while thermal generation will decrease from 78 percent to 52 percent. This will be further accelerated by the early retiral of aging and high polluting legacy power plants based on coal. Renewable energy will play an essential role as India attempts to meet its energy demand, expected to reach 15,820 TWh by 2040. By 2030, the government wants to build 523 GW of renewable energy capacity (including 73 GW from hydro).
The Indian government wants to create a "green city" powered by renewable energy in each state. The 'green city' will use solar rooftop systems on all its homes, solar parks on the outskirts, waste to energy plants, and electric mobility-enabled public transport systems to mainstream environment-friendly power.
Recent geopolitical developments have only increased the focus on improving self-sufficiency and reducing reliance on externally imported fuels, including oil, natural gas, and coal. More countries worldwide are increasingly switching over to renewables to secure their Energy Independence.
A transition away from conventional sources of energy to renewable sources of energy will have stabilized effect on prices and inflation; the reasons for this are:
Renewable energy will bring the majority of our energy consumption into the electricity sector, a highly regulated sector that has historically produced stable energy prices; and Pricing of Renewable Energy is inherently stable compared to fossil fuels since the fuel costs are negligible over the project’s lifetime due to the abundant availability of a natural, renewable resource. This is witnessed by the flat-rate PPA’s that we see in the market, offering long term (up to as much as 25-years) price stability and visibility that is often lacking in fossil fuels.
For the economy to recover better and more sustainably, we must begin to break our dependence on fossil fuels and move to Renewable Energy.
For these reasons, more and more companies are choosing aggressive roadmaps towards their Renewable Energy goals as part of their holistic Sustainability Initiatives. As per PwC’s Annual Global CEO Survey 2022, 22% of global and 27% of Indian companies had made a net-zero commitment. The RE100 list has grown from 13 companies in 2014 to 359 members as of 2022. Together they are creating demand for over 107 TWh of renewable electricity, which will need to be addressed within this decade.
Being the leading renewable energy developer of Open Access solutions, Vibrant Energy helps corporates and businesses reach their 100% renewable target.
To learn more about how Vibrant Energy can help your company switch to renewables in the most hassle-free and economical manner, do reach out to us at sales@vibrantenergyholdings.com